GOOG Stock: Sails Are Set for New Highs

The behemoth that was known as Google but now calls itself Alphabet Inc (NASDAQ:GOOG) first spawned as an Internet search engine. The key factor that separated it from other search engines was that the service they provided actually worked. This was the sole reason why I started using Google as my go-to search engine. Perhaps that is just one of the reasons why GOOG stock has enjoyed so much success; the company produces products that actually work.
The lists of products that are now under Alphabet’s umbrella are tremendous. They have entered numerous market segments like smartphones, driverless vehicles, and robotics—and these are just a few examples of the type of diversification that now defines this company.
Just as certain as I was that their search engine was the right service for me, I am certain about the long-term price trend that has defined the bull market in this name. New all-time highs are a common occurrence and that trend looks to continue.
The following chart illustrates the long-term trend of Google stock.
Chart courtesy of StockCharts.com
GOOG stock has been in a long-defined uptrend since the day it started trading. The trend is from the lower left to the upper right. The uptrend line, highlighted in blue, is constructed by connecting the troughs on the price chart.
The longer a trend is in place, the more significance that is placed on it. If Google stock were to ever break this trend line, the implications would be serious. The good news is that nothing is suggesting that this trend will end any time soon. If anything, the shorter-term timeframes are suggesting further price gains.
The following chart illustrates the shorter-term trend within the long uptrend.
Chart courtesy of StockCharts.com
GOOG stock has been trading in a sideways range, as the gains from 2015 are consolidated. Sideways ranges are a great tool that can be used by traders. These traders can use different investing strategies to capitalize on trading ranges. The different strategies are dependent on the type of trader. One could buy support and sell resistance, while another trader is waiting for one of the support or resistance lines to break before entering a position. Regardless of style, calculating risk is always of the most importance.
The standout on this chart is the gap that occurred in late July. The potential setup after the gap is quite exciting. The following chart using a one- hour chart scale illustrates the current setup pattern.
Chart courtesy of StockCharts.com
I explicitly like this investment because of the juncture it is currently sitting in, with respect to the chart pattern.
The news surrounding the earnings announcement caused the share price to gap. Breakaway gaps rarely get filled and almost always signal that a new trend has started. That gap pushed shares just above the level that acted as resistance in the trading range. In order for the breakaway gap to hold its significance, support at $790.00 needs to hold on a closing basis.
The descending channel developed shortly after the gap was created. The chart pattern that develops after impulse waves is usually bullish if they trade against the predominant trend. If this is the case, then this short-term pattern is a midpoint consolidation. The bullishness of this pattern is being reaffirmed because the pattern is setting up above the trading range and is testing the previous area of resistance that now marks support.
If Google stock can break above the descending channel, the implications are extremely bullish, and those implications would allude to new all-time highs. A short-term price objective would be $890.00 based on pattern setup. Failure to break out would negate the short-term bullish implications.

The Bottom Line on GOOG Stock

Google stock represents an investment that contains a long-term trend that has, and should continue to, benefit bullish investors. GOOG stock is currently testing the upper end of the trading range, and a break above the channel would reinforce the bullish premise. I am bullish on this name, and I will continue to be until the charts give me reason to be otherwise.
GOOG stock is just one of many companies within the technology sector. This sector is known for exceptional levels of growth. Our top tech editor just released a free report that outlines that exact investment theme. To receive “Big Tech Stocks Poised for More Growth,” click HERE.

Alphabet Inc: If GOOG Stock Breaches THIS Point, Shares Could Soar

By Patrick Brik CFA, BAS Published : September 1, 2016

GOOG Stock: Sails Are Set for New Highs

The behemoth that was known as Google but now calls itself Alphabet Inc (NASDAQ:GOOG) first spawned as an Internet search engine. The key factor that separated it from other search engines was that the service they provided actually worked. This was the sole reason why I started using Google as my go-to search engine. Perhaps that is just one of the reasons why GOOG stock has enjoyed so much success; the company produces products that actually work.

The lists of products that are now under Alphabet’s umbrella are tremendous. They have entered numerous market segments like smartphones, driverless vehicles, and robotics—and these are just a few examples of the type of diversification that now defines this company.

Just as certain as I was that their search engine was the right service for me, I am certain about the long-term price trend that has defined the bull market in this name. New all-time highs are a common occurrence and that trend looks to continue.

GOOG stock has been in a long-defined uptrend since the day it started trading. The trend is from the lower left to the upper right. The uptrend line, highlighted in blue, is constructed by connecting the troughs on the price chart.

The longer a trend is in place, the more significance that is placed on it. If Google stock were to ever break this trend line, the implications would be serious. The good news is that nothing is suggesting that this trend will end any time soon. If anything, the shorter-term timeframes are suggesting further price gains.

The following chart illustrates the shorter-term trend within the long uptrend.

GOOG stock has been trading in a sideways range, as the gains from 2015 are consolidated. Sideways ranges are a great tool that can be used by traders. These traders can use different investing strategies to capitalize on trading ranges. The different strategies are dependent on the type of trader. One could buy support and sell resistance, while another trader is waiting for one of the support or resistance lines to break before entering a position. Regardless of style, calculating risk is always of the most importance.

The standout on this chart is the gap that occurred in late July. The potential setup after the gap is quite exciting. The following chart using a one- hour chart scale illustrates the current setup pattern.

I explicitly like this investment because of the juncture it is currently sitting in, with respect to the chart pattern.

The news surrounding the earnings announcement caused the share price to gap. Breakaway gaps rarely get filled and almost always signal that a new trend has started. That gap pushed shares just above the level that acted as resistance in the trading range. In order for the breakaway gap to hold its significance, support at $790.00 needs to hold on a closing basis.

The descending channel developed shortly after the gap was created. The chart pattern that develops after impulse waves is usually bullish if they trade against the predominant trend. If this is the case, then this short-term pattern is a midpoint consolidation. The bullishness of this pattern is being reaffirmed because the pattern is setting up above the trading range and is testing the previous area of resistance that now marks support.

If Google stock can break above the descending channel, the implications are extremely bullish, and those implications would allude to new all-time highs. A short-term price objective would be $890.00 based on pattern setup. Failure to break out would negate the short-term bullish implications.

The Bottom Line on GOOG Stock

Google stock represents an investment that contains a long-term trend that has, and should continue to, benefit bullish investors. GOOG stock is currently testing the upper end of the trading range, and a break above the channel would reinforce the bullish premise. I am bullish on this name, and I will continue to be until the charts give me reason to be otherwise.

GOOG stock is just one of many companies within the technology sector. This sector is known for exceptional levels of growth. Our top tech editor just released a free report that outlines that exact investment theme. To receive “Big Tech Stocks Poised for More Growth,” click HERE.

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners.